Saving up money for your future

There are many different reasons why you might want to start saving up your money. It isn’t easy for everyone to do this, but it can be a massive help to you in the future. If you end up out of work, having unforeseen bills to pay, you need to fix a problem with your car or white goods, or you want to show that you have enough savings to put down a deposit on a house and to obtain a mortgage, a savings account that you have built up over time will help your cause. Seeking any type of credit, whether a personal loan through a financial broker or a payday loan for a quick cash advance ahead of payday, will have an impact on your credit score. Getting into the habit of putting money aside on a regular basis and building up a savings pot will get you in the habit of building a good credit file that helps when seeking credit in the future.

How do you go about creating a positive saving habit though? If you are the type of person who is always out of cash a few days or a week before payday, what can you do to change your ways and make sure that you are never caught short with money?

Work out a budget

The first step to creating healthy spending habits and beginning to save is to look at exactly what you are spending each month and create a set budget from that figure. Obviously, you can leave a percentage either side as wiggle room, but think your rent/mortgage, utility bills, mobile phone bill, grocery bills, transport costs, and what you spend on leisure and recreation each month. Itemise your spending and you’ll soon gain a clear picture of where your money goes.

From this basis of knowledge you can put together a budget. Take your overall spending habits each month and deduct the spending you make on essentials. From the figure left over, reduce it again by about 40% and make this the amount that you put aside into a savings account from now on. Anything beyond that you can continue to spend on whatever leisure and recreation activities you see fit.

Where else can I save money?

When it comes to making savings throughout the rest of your life, think about all of your non-essential spending and where you actually spend that money. There are always ways to cut down on costs, but every person is different and should apply these savings to their specific life habits. For some people, cycling to work instead of driving or taking public transport, could save a lot of money each month in gas, parking and tickets. Other people might start to spend less money on buying lunch out every day in work or cutting down on the cups of coffee they buy on their breaks. What we will say though, is don’t cut everything out. You deserve to treat yourself and to live a happy life. It is possible to keep some spending that you love whilst saving money.

In an ideal world every person would have access to a savings account, even if only a small amount of cash, to help in the most challenging of scenarios. If you have trouble with a bill, an appliance that needs fixing or any other emergency that requires payment now when payday is a short while away, a savings account will help you to cover the cost without dipping into the essentials for that month. In these cases, where you do not have a savings pot to fall back on, it is reasonable to seek out assistance through a payday loan service, borrowing a small amount of cash that you know you can afford to pay back as soon as your next payday rolls around.